Press Release

MainStreet Bancshares, Inc. Reports First Quarter Earnings

Company Release - 4/14/2020 8:00 AM ET

FAIRFAX, Va., April 14, 2020 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB) reported net income of $3.5 million for the first quarter of 2020, which represents a 1.04% return on average assets, and a 9.97% return on average equity, or $0.42 per share of common stock (basic and diluted) for the quarter-ended March 31, 2020.

Net interest income of $10.3 million and noninterest income of $1.4 million continued to trend favorably and consistently for the quarter ended March 31, 2020. Loan loss provisions of $350,000 for the quarter ended March 31, 2020 were primarily driven by loan growth.

Total assets were $1.3 billion and net loans were $1.1 billion as of March 31, 2020. Asset quality remained solid with non-performing assets to total assets at 0.10% as of March 31, 2020. Non-interest-bearing deposits were $241.0 million, representing just over 21% of total deposits at March 31, 2020. Total deposits as of March 31, 2020 were $1.1 billion. Capital levels for the Company remain strong.

As of March 31, 2020, the Company's tangible book value per share was $16.98, up 12.1% from $15.15 as of March 31, 2019. According to Nasdaq, there were 12,093 trades during the quarter totaling 749,744 shares traded. The closing share price of the Company's common stock on March 31, 2020 was $16.76, or 98.7% of book value. The market cap was $138.4 million as of March 31, 2020. In reaction to the significant drop in share price, the Company repurchased 60,000 shares (0.7% of shares outstanding) on March 13, 2020 at a price of $16.54 per share under its previously announced share repurchase program. The Company does not intend to repurchase additional shares at this time.

COVID-19 Timeline

12/31/2019

1/23/2020

2/29/2020

3/13/2020

3/16/2020

WHO reports mysterious illness in China

WHO declares global health emergency

1st death reported in U.S.

President Trump declares national emergency

MainStreet Bank adopts work from home strategy

The coronavirus (COVID-19) changed from a relatively unknown status at the start of the year to "pandemic" status in the United States by mid-March. The Company's first quarter performance was not significantly impacted by the effects of the coronavirus pandemic.

QUOTES: "We had a good first quarter, but from mid-March onward, we've been focused on preventative measures to help our customers," said Chris Brockett, President of MainStreet Bancshares, Inc. and MainStreet Bank. "Our team created meaningful loan forbearance programs for consumers, professionals and small businesses, with the goal of helping to preserve their liquidity. And, when President Trump signed H.R 748, The CARES Act, into law on March 26th, our team worked around the clock to implement the Paycheck Protection Program for our customers."

"Our technology has been a gamechanger," said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "We made the decision to work from home on a Sunday and the next day, Monday March 16th, all but the limited branch team were up and working from home. Since most of our customers were already comfortable using our online banking platform, we temporarily closed two of our seven locations and reduced the hours of the remaining locations. We set the loan forbearance documents and Paycheck Protection Program documents up for DocuSign digital signature(s) for ease of execution, and we hold all meetings by video calls to keep our teams 'in the know'. Finally, we increased the average hourly wage of our dedicated customer-facing branch staff by upwards of 50% as they are literally on the front line of this pandemic."

MainStreet Bank has 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office®. With robust and easy-to-use online business banking technology, MainStreet has "put our bank" in well over 1,000 businesses in the metropolitan area.

MainStreet Bank has a full complement of payment system services for third party payment providers. MainStreet has a known market leader and a highly experienced team ready to help payment providers create a solution perfect for their needs.

MainStreet Bank has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction and commercial real estate. MainStreet Bank is an SBA Preferred Lender, offering SBA 7(a) and 504 lending solutions. From mobile banking and Apple Pay to instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve its customer experience.

MainStreet Bank was the first community bank in the Washington, D.C. metropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides up to $55 million in FDIC insurance. Further information on the Bank can be obtained by visiting its website at mstreetbank.com.

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel.

We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.

(1) Includes ICS, CDARS, and reciprocal deposits maintained by customers, which represent sweep accounts tied to customer operating accounts.(2) Consists of certificates of deposit (CD) through multiple listing services and multiple brokered deposit services, as well as ICS and CDARS one-way certificates of deposit and regional money market accounts.(3) Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank.

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